For further information regarding asset management refer to the Department of Treasury and Finance.
Asset management planning is to be undertaken in accordance with the principles set out in the service planning document including:
- asset planning and management are to be integrated with corporate and business plans, budgetary and reporting processes
- planning, budgeting and reporting on assets are to be integrated with broader planning processes, both within agencies and between central and other agencies
- asset management decisions are to be based on evaluations of alternatives that take into account full life cycle costs, benefits and risks of assets.
Capital expenditure decisions are to be based on rigorous and documented economic appraisals of options. Appraisals, in accordance with the business case guideline are to include financial as well as non-financial parameters. A party other than the proponent of the project should evaluate the economic appraisals.
- Asset management planning requires that future expenditure planning on capital works address key issues of need, priority, urgency and risk management.
- Monitoring of cost of assets in use, along with the prediction comparisons is necessary due to managers being accountable for operation / use of assets.